CBA launches new CommBank app feature for millennials to plan finances

By Edil Corneille

Commonwealth Bank of Australia (CBA) has launched Bill Sense, a new CommBank app feature that predicts future bills. The new feature will help customers, especially those new to budgeting, to plan their finances better.

According to research commissioned by CBA, 70 per cent of millennials surveyed struggle to prioritise their finances, most commonly because thinking about money makes them anxious. CBA Head of Behavioural Economics, William Mailer, said a third of Australians in this age group recognise they make too many impulse purchases but that they struggle to set a budget and stick to it.

“Managing today’s finances, while also preparing for tomorrow is difficult for anyone. It’s no surprise that our recent survey showed that so many young Australians are facing some level of financial anxiety with these decisions. Smart digital services which make trade-offs between today and tomorrow clearer, can help us to keep control today, and stay on track towards our goals,” he said.

CBA’s latest digital feature available in the CommBank app, helps customers plan and stay ahead of bill payments whether they are debited from an everyday account or credit card. Customers can see how much they will need to cover for bills each month – up to 12 months in advance – on one simple timeline.

In addition to keeping bills in one place, Bill Sense can predict customers’ upcoming bills. A predicted bill is an estimate of an upcoming regular or variable payment made on previous payments made from their account or card.

Whilst the research found that many millennials struggle to prioritise their finances, it also uncovered that exercising daily (50 per cent), paying all of their bills on time (48 per cent) and knowing how much money is in their bank account (37 per cent) are their top three stress relievers. Further, when it comes to the daily ‘small wins’, 70 per cent of millennials say it is being in control of their finances that provides them with the biggest sense of accomplishment.

Dr Gina Cleo, Director of Habit Change Institute, said accomplishing small wins is linked to confidence, which is the key driver in being likely to reach long term goals. When compared with those who weren’t in tune with upcoming bills, millennials who were very confident in their visibility on their monthly bill payments were three times more likely to believe they will achieve their long term savings goals (50 per cent compared to 16 per cent).

The research also looked at what financial and budgeting tools millennials use and one third surveyed admit to not using these tools to help them reach their goals. Of those that are using tools, just over 40 per cent are only doing so every fortnight or even less frequently.

Molly Benjamin, Founder of the Ladies Finance Club said, “As a millennial, I have always been conscious of my long term financial future but simply didn’t know where to start when it came to budgeting. Financial and budgeting tools, such as CommBank’s Bill Sense, as well as setting up direct debits to pay your bills and paying yourself first by automating savings are effective and simple ways to empower millennials to achieve their financial goals.”